Lloyds unveils plan to raise $595m

12 March 2013

Lloyds Banking Group has unveiled plans to raise £400 million ($595 million) through the sale of part of St James's Place.

The major British financier revealed this morning (12 March) that it wants to get rid of a proportion of its holding in the wealth management group in order to boost its capital position as it seeks to become re-privatized.

Following its rescue of HBOS in 2008, Lloyds took over a stake of around 60 in the company and, although it is looking to sell the equivalent of around one-fifth of its share by placing shares on the stock market, it plans to maintain a lower interest in the firm.

Lloyds - which recently reported a full-year loss for 2012 - intends to make this sale in order to bolster its tier one capital ratio ahead of the implementation of the global Basel III regulations.

David Bellamy, chief executive of St James's Place, said this process will help lift the share price of his organization.

By Gary Cooper

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